CBI seeks opinion on cross-holding of Essar shares in Loop

Probe had been submitted to Directorate of Prosecution comprising lawyers to give its opinion.

CBI has submitted its findings on cross-holding of shares of Essar in Loop telecom to its legal wing for opinion following differences in probe between it and Corporate Affairs Ministry which said the Ruias-led group held only 2.15 per cent stake in Loop telecom and not over 10 per cent as alleged when 2G licence was granted.

Sources privy to the investigations said the entire probe had been submitted to the Directorate of Prosecution comprising eminent lawyers to give its opinion as the CBI investigation has claimed so far that the cross-holding of shares of Essar in the Loop telecom was higher than the prescribed 10 per cent,a charge denied by both the companies.

The sources said that if the legal department of the CBI concurred with the findings of the investigators,the agency would proceed for filing of charge sheet and if there was a difference of opinion,the matter would be sent to the Law Ministry for taking a final view. The Registrar of Companies (Mumbai) has said,”The Essar Group,directly or indirectly,held only 2.15 per cent of Loop Telecom as on September 03,2007 i.e. the date on which the application was made to DoT for UAS licence”.

The RoC letter also said that the documents of the company do not substantiate “Associate” relationship between “Essar Group and Khaitan Group” as alleged. The CBI has been contesting the claims of Essar and Reliance saying that both the companies held more than 10 per cent of shares in Loop and Swan when the spectrum was allocated to them,a charge rebutted by both the companies.